Company Profile of National Bank Limited:
National Bank Limited is one of the pioneers of first generation private commercial bank incorporated in 1983. Since inception, NBL to provide modern banking facilities to the mass people is opening branches in rural areas alongside urban areas giving due importance. Presently, the bank created a strong market base through 121 branches and 10 SME centers throughout the country. Customer’s satisfaction and involvements gets priority in our daily activities.
The bank got priority as pioneer in different sectors for taking innovate steps in development of counter’s economy and upgrading the socio-economic status of rural people. Moreover, to encourage expatriates and to generate trust in sending money through legal channel, the bank took some challenging steps and became the pathfinder.
Meeting the need of the customers through modern technology with efficiency and searching new sectors of business, the bank strives to increase its trends of growth. The not only dedicated to profit maximization, it also remains active in fulfilling its social responsibilities.
Besides participating in building national economy, NBL is always a caring bank in adding value to the assets of the shareholders. In short, these are the focus of our banking ethics.
Historical Background :
National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain.
At present we have 149 branches under our branch network. In addition, our effective and diversified approach to seize the market opportunities is going on as continuous process to accommodate new customers by developing and expanding rural, SME financing and offshore banking facilities. We have opened 10 branches and 5 SME/Agri branches during 2011.
The then President of the People’s Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong.
Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.
Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service as well as to our commitment to serve the society through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.
Role of Banks in the modern Economy
The prosperity of a country depends upon its economic activities. Like any other sphere of modern socio-economic activities, banking is a powerful medium of bringing about socio-economic changes of a developing country. Agriculture, Commerce and Industry provide the bulk of a country’s wealth. Without adequate banking facility these three cannot flourish. For a rapid economic growth a fully developed banking system can provide the necessary boost. The whole economy of a country is linked up with its banking system.
Functions of the bank
The functions of the bank are now wide and diverse. Of all the functions of modern bank, lending is by far the most important. They provide both short-term and long-term credits. The customers come from all walks of life, from a small business to a multi-national corporation having its business activities all around the world. The banks have to satisfy requirements of different customers belonging to different social groups. They function as a catalytic agent for bringing about economic, industrial and agricultural growth and prosperity of the country.
Product and Service
Service of the Professional Personal
The officers of National Bank limited have to their credit, decades of banking experience with national / international banks at home and abroad.
A State-Of-The-Art Technology Banking
The Bank will provide a state-of-the-art technology banking such as Any Branch Banking, ATM Services, Home-Banking, Tele-Banking, etc.
Bank offers individuals the best services, including to provide complete customer satisfaction:
- Deposit services.
- Current Account in both Taka and major foreign currencies.
- Convertible Taka Accounts.
- Local and foreign currency remittances.
- SME Banking.
- Any Purpose loan
National Bank Limited caters to the needs of the corporate clients and provides a comprehensive range of financial services, which include:
- Corporate Deposit Accounts.
- Project & Infrastructure Development Finance, Syndicated Finance, Linkage Finance, Investment Business Counseling, Working Capital and other finances.
- Bonds and Guarantees.
Being a commercial bank, National Bank Limited provides comprehensive banking services to all types of commercial concerns. Some of the services are:
- Trade Finance.
- Commodity Finance.
- Issuance of Import L/Cs.
- Advising and confirming Export L/Cs. – Bonds and Guarantees.
- Investment advice.
National Bank limited offers ‘Any branch’ banking service (to limited scale) that facilitates its customers to deposit, withdraw and transfer funds through the counters of any of its branches within the country.
Merchant Banking Advisory Services
The Bank will provide Merchant Bank advisory services, offer complete packages in areas of promotion of new companies, evaluation of projects, mergers, take-over and acquisitions, liaise with the Government with regard to rules and regulations, management of new issues including underwriting support etc.
Capital Market Operation
The Bank will also introduce capital market operation which will include Portfolio Management, Investors Account, Underwriting, Mutual Fund Management, Trust Fund Management etc.
Farm and Off-Farm Credits (Rural)
Out of Bank’s social commitment towards the population at the grass-root level, it will participate in farm and off-farm credit programmers in rural Bangladesh to bring in economic buoyancy in the periphery.
Credit To Women Entrepreneurs
The Bank believes in ‘Equal Opportunity Policy’ and as such has been contemplating to introduce credit programmers for willing and talented women entrepreneurs.
Counter for Payment of Bills
Dedicated counters are available at National Bank Limited’s branches to receive the payment of various utility bills.
- Remit funds from one place to another through DD, TT and MT etc.
- Conduct all kinds of foreign exchange business including issuance of L/C, Traveler’s Cheque etc.
- Collect Cheque, Bills, Dividends, Interest on Securities and issue Pay Orders, etc.
- Act as referee for customers.
- Locker facility for safe keeping of valuables and documents.
Deposits and advances
Deposit of the Bank showed a continuous increase during the year and in 2010 stood at TK.102471.8 million. The growth over previous year was 33.37 percent. The growing customers’ confidence in National Bank helped the necessary broadening of customer range that spanned private individuals, corporate bodies, multinational concerns and financial institutions. The Bank introduced various products/ schemes to attract the depositors.
Cash and Balances with Banks and Financial Institutions
Cash and Balances with Bangladesh Bank was TK. 8695.31 million as against Tk. 6843.69 million in 2010. The funds are maintained to meet Cash Reserve Requirement (CRR) and Statutory Liquidity Requirement (SLR) of the Bank. TK. 1101.57 million as at 31 December 2010. The Bank maintained sufficient balances with correspondents outside Bangladesh to facilitate prompt settlement of payments under Letter of Credits commitments.
Investments of the Bank were TK. 24993.33 million showing an increase of 11.53 percent during the year under review. Investment activities centered around meeting the Bank’s SLR and were mostly in the form of Government Treasury Bills having varying dates of maturity. The average yield on the bills was 7.00% per annum.
Loans and Advances
The Bank’s total Loans and Advances stood at TK. 92003.56 million in 2010 showing a growth of 28.55 percent compared to Tk. 65129.29 million of 2009. Bank’s clientele comprised of corporate bodies engaged in such vital economic sectors as Trade Finance, Steel-Re-Rolling, Ready Made Garments, Textiles, Ship Scrapping, Edible Oil, Cement, Transport, Construction etc.
The Bank continued to offer loans under Consumer Credit Scheme to the fixed income group to enable borrowers to acquire consumer products such as household appliances, office equipment, motor vehicles, mobile phone etc.
Foreign Exchange and Foreign Trade
The bank opened a total number of 24,385 LCs amounting USD 1,117.61 million in import trade in 2010. The main commodities were scrap vessels, rice, wheat, edible oil, capital machinery, petroleum products, fabrics & accessories and other consumer items.
The bank has been nursing the export finance with special emphasis since its inception. In 2010 it handled 18,761 export documents valuing USD 559.78 million with a growth of 5.41 percent over the last year
Merchant Banking activity has lately gained popularity in our country. At the initial stage the activities would center on issue Management, Portfolio Management, pre-placement and underwriting.
The Bank has established a wide network of branches in urban and rural areas totaling 356. National Bank Limited is the largest Commercial Bank in Private Sector in Bangladesh.
Divisional Operations in National Bank Limited
The operations in National Bank limited are carried out through 5 separate departments:
1 General Banking (GB)
4 Trade Finance
1) General Banking
The General Banking division, in National Bank Limited, generally performs the following functions:
a) Account opening
b) Cheque book issue
c) FDR issue and encashment.
d) Product issue and encashment
e) Account transfer from one branch to another branch
f) Pay order issue and encashment
g) Fund transfer from one account to other account
h) Inward Remittance and Outward Remittance
i) Demand Draft (DD) issue
j) Stop payment order
k) Issue of solvency certificate
l) Inward and outward clearing
Cash division is the center point of any bank. In National Bank Limited, the cash division performs an integral part of its banking operations.
The tellers in the cash division receive cash from the clients and gives necessary postings in the PIBS (National Bank Integrated Banking Software). At the time of receipt, ‘cash received’
and ‘posted’ seal is attached to the deposit slip. At the time of payment, the tellers first verify the signatures and then make payment. If the check is for a big amount, then it has to be authorized by the cash in charge and branch in charge. The seals used here are ‘cash paid’, posted’ and ‘signature verified’.
In National Bank Limited, the accounts related information is fully computer generated. The central IT department generates several important statements such as the General Ledger, profit and Loss Account, Transaction journal, Overdraft and Advances Position, Full Balance position etc. These statements are disseminated in the network so that every branch can have access to its accounting information at the beginning of each working day.
4) Trade Finance
Trade Finance division operates independently in the branches and it generally deals with the followings:
a) Import L/C
b) Export L/C
c) Local & foreign Bills Purchased
a) Import L/C
When a client comes to open an L/C, basic queries about the IRC, VAT registration number, TIN etc, are made. If the bank is satisfied with all the documents, an L/C is opened and an operational entry for L/C opening is passed in Micro Bank.
b) Export L/C
National Bank Limited provides money to the borrowers in terms of Packing Credit and Back to Back L/C.Packing credit is essentially a short term advance with a fixed repayment date granted by the bank to an eligible exporter for the purpose of buying, processing, manufacturing, packing and shipping of the goods meant to be exported.
The credit division is also an independent division in National Bank limited. This division basically deals with the extension of credit to the worthy clients and thus to make a profit from the interest charges. The bank invests the money of the depositors and thus the credit division has to be very cautious in terms of credit extension.
The credit division arranges for different types of loans and high emphasis is given on Small and Medium Enterprises (SMEs). It also issues bank guarantee in favor of the clients. Necessary postings are made through Micro Bank software.